Hackney faces crisis cuts.

And it could be forced to go cap in hand for more money from the public purse if it is to comply with government orders, a report by the council’s managing director has revealed.

Max Caller, who was brought in last year to sort out the crisis, has said in the report to the council’s policy and finance committee that ‘there will inevitably be services that will need to cease so that the council can return to financial health’.

The stark warning came after Hackney was ordered by five government departments to tackle significant failures in council services.

Caller’s report admitted this would incur extra expense, but said it was hoped the government would be willing to hand over the necessary cash ‘in whole or in part’.

Deloitte & Touche has already been called in at the government’s expense to recruit seven new finance staff to prop up the existing department that Caller said is ‘inadequate in process and performance and substantially lacks the skill sets to improve’.

At the same time PricewaterhouseCoopers has completed a government-funded study on the council’s financial controls.

For more information go to www.hackney.gov.uk

For background information on this story go to www.accountancyage.com/Public+Services/1125316.